Fitch rates Beijing Infrastructure notes A+

Fitch Ratings said it assigned an expected rating of A+ to Beijing Infrastructure Investment Co Ltd.'s proposed dollar-denominated senior unsecured notes.

The proposed notes will be issued under the company's $6 billion medium-term note program, which is rated A+.

The proceeds will be used primarily for the development of Beijing's urban railway transit system, working capital and general corporate purposes, Fitch said.

The proposed notes will be issued by Eastern Creation II Investment Holdings Ltd. and are unconditionally and irrevocably guaranteed by Beijing Infrastructure Investment (Hong Kong) Ltd., a wholly owned subsidiary of Beijing Infrastructure, the agency said.

The notes will be senior unsecured obligations and rank pari passu with all other of Beijing Infrastructure Investment (Hong Kong)'s obligations, Fitch said.

The proposed notes are rated at the same level as Beijing Infrastructure's issuer default rating given the strong link between Beijing Infrastructure Investment (Hong Kong) and Beijing Investment and because of keepwell and liquidity support deeds, the agency explained.

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